Orient Technologies is all set to launch its IPO, open for subscription from August 21 to August 23, 2024. Here are 10 important points from the Red Herring Prospectus (RHP) you should know before making a decision:
IPO Subscription Details
The IPO price is set between ₹195 and ₹206 per share. Investors need to apply for a minimum lot size of 72 shares, which means the smallest investment would be ₹14,832.
IPO Objective
The company aims to raise ₹214.76 crore through the IPO. This includes a fresh issue of ₹120 crore and an offer for sale (OFS) of ₹94.76 crore by existing shareholders. The funds will be used for buying office space in Navi Mumbai and purchasing equipment for its Network and Security Operations Centres. Some funds will also go towards general corporate purposes.
About the Company
Established in 1997, Orient Technologies provides IT solutions in areas like IT infrastructure, cloud services, and data management. The company is based in Mumbai and has been offering specialised IT solutions for several years.
Key Risks
The company heavily depends on its top 10 customers. Losing any of these clients could hurt its business. Additionally, the company relies on a few key industries for most of its revenue, so any major changes in these industries could also have a negative impact.
Financials
For the financial year ending March 31, 2024, Orient Technologies’ sales grew by 12%, and its profit after tax (PAT) increased by 8% compared to the previous year.
Promoters
The company is promoted by Ajay Baliram Sawant, Jayesh Manharlal Shah, Umesh Navnitlal Shah, and Ujwal Arvind Mhatre.
Managers and Registrars
Elara Capital (India) Private Limited is the book-running lead manager for the IPO, while Link Intime India Private Ltd is the registrar.
Allotment and Listing
The allotment of shares is expected to be finalised on August 26, 2024, with the listing scheduled for August 28, 2024, on both the BSE and NSE.
Competitors
Orient Technologies competes with companies like Dynacons Systems & Solutions, HCL Technologies, Wipro, Tech Mahindra, and others. According to the RHP, the price-to-earnings (PE) ratio for these companies ranges from 16.46 to 37.51 times their FY23 earnings. Orient Technologies’ earnings per share (EPS) is ₹10.94.
Grey Market Premium (GMP)
Currently, the Grey Market Premium (GMP) for Orient Technologies’ shares is zero, meaning there’s no premium over the issue price in the grey market.
Before investing, make sure to consult with a financial expert to understand the potential risks and rewards of this IPO.
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